Most homeowners never thought they would have to think about stopping a foreclosure. However, today’s homeowners are faced with extenuating circumstances due to the downturn in the economy. This has prevented many people from making their mortgage payments on time.
There are many reasons why a person will find themselves in this situation, such as job loss, sudden illness, or an inability to pay an increasing adjustable interest rate.
What is the secret to stopping a foreclosure when the lender has filed a Notice of Default? The answer is that your options will be limited, but there are still things that can be done to stop foreclosure. You will be given a certain period of time to bring your payments current and also pay the additional cost of filing and staying the foreclosure. This is called reinstating your loan.
You must act fast; Time is of the essence, if your house payments are more than a month behind, your lender may have already started the foreclosure process. The more time you wait, the more you will have to pay in fines and legal fees. Keep in mind that additional interest is added to your loan every day.
If you are not prepared to do something on your own, you should contact someone who is an expert in foreclosure and loan modification. There are many reputable loan modification companies that can help negotiate with your lender on your behalf. This will allow you to be current on your mortgage payments and keep them current.
There are different options available. It will depend on your personal financial situation what options will be available to you.
Reinstatement is when you promise to pay a lump sum to bring your payments up to date on a specific date. This payment would include the amount due, any late fees, and attorneys’ fees.
Payment plan This is when you agree to pay part of the past due amount each month along with your regular payment.
Loan modification or loan restructuring This is when you negotiate with the lender to extend the term of your loan and add past amounts to the principal. This will modify the amount of the loan so that you can make your payments.
These are just a few of the options available and will help you stop a foreclosure. The important thing to keep in mind is that the sooner you start contacting people and getting control of the situation, the faster you can resolve this issue.